Seeing pickup in capex; Budget 2022 will promote growth across sectors: Amitabh Chaudhry

Finance Minister Nirmala Sitharaman unveiled her fourth Union Budget for the fiscal year 2022-23. The Budget outlined the government’s clear intent to push capital spending and infra in the economy. The capex-centric, infra-focused Budget outlined a 37 percent rise in capital expenditure with the Centre willing to do the heavy lifting to ensure the economy gets out of the shadows of the pandemic-induced disruptions on the supply side.

Sharing his first impressions on the Budget, Amitabh Chaudhry, MD & CEO, of Axis Bank, said the capex outlined in the Budget is capable of boosting growth across sectors.

He said, “There is an incredible number of announcements made to ensure that the capex side of things picks up. I think there is no sector that is left untouched. I am just amazed by the gamut of announcements. There is enough in the Budget to promote growth of all kinds across various sectors.”

He believes the intention of the government is extremely strong and execution will be key. “With the monetary policy stabilisation, we do expect some hardening of rates, but that is not going to impact either the increase in private capex or what the government intends to do through its extremely large capex programme, which they have talked about in the Budget. So very, very impressed with what they are talking about for now,” he mentioned.

On credit growth, Chaudhry said, “We don't know what the government borrowing programme is - at least I have not got the numbers. But the bond market is reacting, the rates are up a little bit. I believe there is enough in terms of credit growth, in terms of opportunities, in terms of what the intent of the government is.”